Post: Boost CHP profitability in PJM with GridBeyond’s TwinPoint

Boost CHP profitability in PJM with GridBeyond’s TwinPoint

Maximise revenues, reduce costs, and cut emissions; without compromising operations.

Combined Heat and Power (CHP) systems are critical assets for industrial, commercial, and institutional sites. But running your CHP on a fixed schedule could mean leaving hundreds of thousands of dollars in unrealised value each year.

GridBeyond’s TwinPoint for CHP uses AI, digital twins, and advanced forecasting to unlock hidden flexibility, co-optimise across your site’s assets, and capture new revenue opportunities, all while respecting your heat and operational constraints. In this article we explore how it works.

Why optimisation matters

PJM’s market is changing rapidly. More renewables in the generation mix mean greater price volatility; and higher value for flexibility. CHP owners can now tap into multiple high-value opportunities, including:

• Synchronized Reserve
• Economic Demand Response
• NITS and peak optimisation
• Wholesale energy trading

With the right optimisation strategy, a typical 10MW CHP system can deliver up to $816,620 per year in combined revenues and cost savings, while reducing Scope 2 emissions.

Working with headroom

TwinPoint is built specifically for CHP plants. It goes beyond generic energy management by co-optimising CHP alongside boilers, heat pumps, and flexible loads to ensure maximum value from available headroom.

1. Step 1: real-time data collection: sensors gather live data on fuel use, steam volumes, weather, market prices, and production schedules
2. Step 2: AI forecasting and Digital Twins: we build a digital replica of your plant, modelling thermal dynamics, fuel efficiency curves, and operational constraints to forecast energy prices and heat demand up to 7 days in advance
3. Step 3: smart scheduling: the system dynamically adjusts CHP, boiler, and heat pump operation to match favourable market windows (for example, running the boiler when electricity prices are low and ramping CHP output when prices peak)
4. Step 4: continuous optimisation: our algorithms constantly refine schedules as market and site conditions change, ensuring consistent performance and profitability.

How GridBeyond does it differently

Most providers optimise CHP around fixed patterns or simple market triggers based on readily available headroom. GridBeyond takes a more precise, profitability-driven approach by continuously tracking the break-even marginal cost of electricity generation.

If your CHP plant is sized without available headroom our technology monitors the break-even marginal cost of electricity throughout the day. This is calculated using the formula: gas price per megawatt-hour divided by efficiency. This gives the cost at which it makes sense to generate electricity using the CHP. When the market price for electricity drops below this break-even point (the “spread dips negative”), the CHP is ramped down and electricity imports increased and/or flexible assets turned down. This creates headroom. The freed-up capacity can then be used to participate in more lucrative market opportunities, such as regulation services or energy markets, depending on which is more profitable at the time.

This approach is unique because it integrates real operational costs, market conditions, and heat requirements into one decision-making engine; ensuring every dispatch decision boosts long-term profitability.

Why choose GridBeyond

For a typical 10MW plant in PJM GridBeyond’s solution delivers:

• $816,620/year in revenues and savings
• Reduced Scope 2 emissions
• No disruption to operations
• Improved asset efficiency and lifespan

GridBeyond’s CHP TwinPoint offers distinct advantages over other providers:

• true CHP-specific expertise: we model both heat and power constraints for precise scheduling
• full-market revenue capture: go beyond Capacity-only strategies; tap into DR, reserves, and energy trading
• break-even cost monitoring: ensures your CHP only runs when profitable, creating capacity for higher-value opportunities
• proven results: real-world clients have achieved six-figure annual benefits with no operational disruption.

Take the next step

In PJM, energy flexibility is more valuable than ever. If your CHP is still on a static schedule, you could be missing out on significant market revenue. GridBeyond can help you turn your CHP into a profit centre, without compromising heat supply or operational stability.

Book a call to discover your revenue potential.